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FBN’s Charlie Gasparino explains how investors are deciding whether to pull their money out of SAC Capital.
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But what is the tests used by major investors for deciding whether or not to yank money out of the troubled hedge fund SAC capital from Charlie Gasparino has the exclusive -- -- And he now joins us by phone Charlie what -- you.
Well as we as you -- know one point seven billion dollars as did.
Yanked out of SEC capital battle come out over the next year just the -- to schedule works.
But we should point out that next redemption date that was as redemption date February the next redemption date is going to be in May -- -- a lot of people.
Basically what you're garage and looking after our option that is whether to take out money out of here -- the port -- and I.
I'm getting different major investors people like at Blackstone major investors that have big -- and Eric Stoltz.
I've not taken all the that would go look at that essentially.
Is management -- number -- very low management turnover at safety capital.
Number two returns we should point out this EC -- pretty good returns.
-- 2012 they've returned 12% in January of this year they're up 2%.
I'd -- worked -- had this kind of huge they're looking at what's known added these statute of limitations involving.
Steve Cawley -- to keep -- -- one of the debate cases that are out there involving Cohen QE including this Matthew portola business.
This statute of limitation and in July.
Every day we get close to that active looks like -- call it is not going to get indicted.
So those -- the basic test here.
I could tell you that everything is basically handing out okay for SEC capital.
We should point out that the -- is kind of like some redemptions because guess what what firm.
Like this fourteen billion dollars under management gets smaller it's easier to manage could do -- you can make more money out of it.
And SEC has its own capital of their members -- colonists of the like six billion.
Partners have another two billion so it it's still formidable -- -- the outside money but the big thing -- It is the indictment and will the statue limitations run out and out -- have.
That July date he's pretty -- -- that's when it's over and out say if they don't predict case against him by July when a lot of big investors -- They probably won't brigade case -- a lot of these charges stem from 2008.
And before and by the way -- five years we -- right there so that's what we are right now basically engage in terms of we've done redemptions.
If they think that both dead dead critical to get indicted -- between may and June in -- in July.
DC a lot more money come out billions I would say much more than one point seven billion.
But you know it all depends does Matthew more job but the guy's been indicted that would -- case that -- split and it doesn't look like Q will.
So there's a particularly that this -- -- bet it's like the market.
The betting right now is that every date gets closer to July.
Money's not gonna come out he cult of.
Survives a -- quickly I mean.
But you can only take -- 25% -- -- take you a year to get away money out anyway right.
-- back up but still you know what you start.
You know pulling the plug.
Yeah -- it's a cascading effect and you know you -- you can't pull it out old ones but it -- it looks like he's getting indicted him I think he is it's clear that the government wants.
More talk Matthew mortal but the -- is it has been no secret about that.
Every day we get closer to July that he doesn't.
-- -- -- -- -- Very good stuff Charlie Gasparino Charlie thanks for joining us for the latest on SEC capital.
